Efficient and Sustainable Human Development Index (ESHDI): An Alternative Proposal
Keywords:
Data envelopment analysis, meta-frontier, environmental efficiencyAbstract
The Human Development Index (HDI) is the most common indicator used to measure the development level of a country. However, in order to incorporate other dimensions in its calculation, the HDI has been received several considerations in the literature. In this sense, this paper proposes to include a new component into the HDI to consider the technical efficiency indicators in a sample of 66 countries. For this, we incorporated into the HDI some variables that represent the quality of resources allocation in education and health, as well as the performance of managing carbon dioxide emissions. So, the countries that have better ability for applying resources in these areas would be able to obtain a higher value in the new development index, the ESHDI - Efficient and Sustainable Human Development Index. The results highlighted that a few countries are completely efficient, and countries with higher incomes are more efficient and developed than the others. We concluded that might exist a positive reinforcement cycle in the developed countries, in which higher income could stimulate better resource allocation and human development as well. This possible cycle should be also triggered in developing countries.
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